With all the noise about ‘greening’ and climate change, more and more industries and stakeholders are beginning to see reasons why sustaining the earth is a viable and serious business. I think this is a good development and the rewards would come in fast in the nearest future.
A recent report from a study conducted on 600 real estate industry experts shows that ‘greening’ has become an unavoidable and very important factor for attracting financial investments in real estate. After going through the report – Emerging Trends in Real Estate, published by PwC and the Urban Land Institute (ULI), I cannot but agree more that ‘sustainability issues’ should form a basis for real estate financing.
Indeed there are several other viable alternatives to erecting buildings in whatever terrain, but the traditional lust for cheap but dying resources like timber is still limiting our capacity to explore or put these available substitutes into use. The same can be seen in the motor industry and many others.
Even though real estate developers, government organizations, shareholders, and eventual users are more open to sustainability, fund managers interviewed remain skeptical over the prospect of financial rewards from higher up front sustainable property costs.
It is this kind of ‘clash of interest’ that remains the bane of mankind from moving forward. Although it is true that ‘green’ buildings may not be attractive to financiers at the moment, the recent trend shows that there is a shift in ‘ideas’ and ‘focus’ in that respect.
Obviously, it is the real estate financier with a vision for long term profits that can see the benefits and tap into this new idea and lay a claim as ‘the first arrival’ when the time comes.
My recommendation is simple: government in the U.K and every other country should give meaningful incentives to developers opting for ‘green technology’ before and after constructing. I am aware that these kinds of gestures are already being offered in other sectors; the real estate industry should not be left out if we are to see a significant reduction in the dearth of forests and other environmentally endangered building materials.
